17th Jun 2016 05:29
LONDON (Alliance News) - HSBC Finance Corp, a unit of HSBC Holdings PLC, on Thursday said it has agreed to pay USD1.58 billion to settle a 14-year shareholder class action based on events that took place prior to HSBC's acquisition of Household International Inc in 2003. The settlement is subject to court approval.
The settlement is expected to result in a pretax charge to HSBC Finance of about USD585 million, including legal fees and expenses, in the second quarter of 2016. The bank said it could have faced liability up to USD3.6 billion.
The case was filed in 2002, and a federal jury in Chicago in 2009 ruled that executives at Household made recklessly misleading comments. In October 2013, a judge entered a USD2.46 billion judgement against HSBC on some claims.
In May 2015, the US Court of Appeals for the Seventh Circuit reversed a partial final judgement against Household International Inc, the predecessor entity to HSBC Finance, and remanded the case for a new trial on loss causation and damages.
Copyright RTT News/dpa-AFX
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